Someone I know was busted selling UA miles as a Prem Exec. They cancelled all reservations booked with those miles and they left him with a negative 150,000 mile balance in his account AND dropped him to the general member level. They allowed him to remain a Mileage Plus member though. Sux, but honestly, he deserved it.

To the OP-- trust me -- and don't listen to anyone who says other than this:

Yes, your friend should cooperate with AA in every way. Be completely honest, promise never to do it again, give them all info they need and vow to be a loyal customer and a straight-shooter from here on out.

If there was a broker involved, your friend will have to make some decisions-- hard ones maybe-- but he should be completely 100% forthright with AAdvantage and he'll get through this (assuming it's his first time (in the eyes of AAdvantage, more importantly)) without much damage.

I'm not so sure that a blank statement like this can be made. I'm not disputing the fact that it can happen, but AA bean counters are very powerful in instances like this. Depending on his spending history they may allow him to keep his status, but definitely there will be some punishment coming down. It may be the miles in the bank, it may be the lifetime miles or as you said, it may be good bye to the status.

"The sale, barter, gift or assignment by Members of AAdvantage Miles, mileage awards or other benefits is expressly prohibited. All Miles purchased under the buyAAmiles or giftAAmiles programs are non-refundable. All transfer fees for Miles transferred using the shareAAmiles program are non-refundable.

Any improper usage or misuse of AAdvantage Miles shall be grounds for immediate confiscation and forfeiture of such Miles, and may be grounds for the forfeiture of all Miles in the Member's account and the Member's ejection from the AAdvantage Program."

Somehow I think asking for mercy will be too little too late, although the term "may" implies a little bit of negotiating possibility

Symantics: Maybe not ENTIRELY accurate, but I wouldn't say "in the least". I think he'd be very lucky to keep his elite status. But it COULD happen I guess.

The difference is, I actually know of many cases-- including quite a few FTers whom I've assisted with this exact situation-- and I actually am talking completely factually-- not in catch-phrases, conjecture, bombast, hearsay and aa.com quotes.

In other words, real-life, factual, experience-based info which the OP will benefit from. Your statement is not accurate-- in the least. But feel free to stand by it if that's your preference.